- Empowered Funds, under the labels Ark Invest and 21Shares, has submitted applications for three new Bitcoin futures exchange-traded funds (ETFs).
- The flagship among these three, Ark 21Shares Active Bitcoin Futures ETF, is predominantly aimed at allocating resources to Bitcoin futures trading on the Chicago Mercantile Exchange.
- Experts believe that Ark and 21Shares are aiming to diversify their range of Bitcoin ETFs and are exploring other avenues to expand their futures-based ETF offerings.
Increasing Institutional Interest in Bitcoin Market: An affiliate of Alpha Architect has submitted three Bitcoin futures ETF applications.
Empowered Funds Files Application for Bitcoin ETF
Empowered Funds, a subsidiary operating as EA Advisors under Alpha Architect, has submitted applications for three new Bitcoin futures exchange-traded funds (ETFs) under the labels Ark Invest and 21Shares. Although these ETFs will carry the 21Shares and Ark brands, their actual management roles are determined in different ways: 21Shares will serve as a sub-advisor, while Ark will act as a sub-sub-advisor for these funds.
The flagship among these three, Ark 21Shares Active Bitcoin Futures ETF, is predominantly aimed at allocating resources to Bitcoin futures trading on the Chicago Mercantile Exchange. This ETF will also function as the underlying ETF for the other two Bitcoin-related funds.
The second in the series, Ark 21Shares Active On-Chain Bitcoin Strategy ETF, is designed to allocate at least 25% of its assets to Digital Asset and Blockchain Strategy ETF. This fund aims to use a specialized trend indicator model to adjust its asset allocation strategy in response to current bull or bear conditions. During bull periods, the ETF has the flexibility to invest all its assets into the underlying ETF.
In bear market conditions, the fund allocates 75% of its assets to US Treasury bonds, money market instruments, and repurchase agreements. This ETF will adjust its Bitcoin futures trading position based on trend assessment, but the investment team will have full authority over the asset allocation strategy.
The third in the series, Ark 21Shares Digital Asset and Blockchain Strategy ETF, will invest in the underlying ETF and explore investments providing exposure to digital assets, as well as investing in companies operating in the blockchain, digital asset, technology, and finance sectors. This fund can allocate 80% of its assets to Bitcoin futures ETF or alternative assets and invest the remaining 20% in cash-like assets such as Treasury bonds and real estate investment trusts.
Exact Fees of the ETFs Not Disclosed
Reports indicate that the exact fees of these ETFs have not been disclosed, but Ophelia Snyder, the co-founder and president of 21Shares, will serve as a portfolio manager for these funds.
Experts believe that Ark and 21Shares are aiming to diversify their range of Bitcoin ETFs and are exploring other avenues to expand their futures-based ETF offerings. Despite the delays SEC has faced in approving spot Bitcoin ETFs, these firms are seen seeking alternative paths to expand their crypto funds.
Despite the hurdles in approving spot Bitcoin ETFs, it’s evident that Ark is using its existing resources to expand its portfolio of crypto funds. Alpha Architect, the parent company of Empowered Funds, has a portfolio of 15 ETFs with a combined asset value of $1.9 billion as of July 31st. Over the course of last year, investors directed a significant amount of $717 million into these funds, highlighting the growing demand for investment products related to cryptocurrencies.
